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Didn't the CBO calculate recently that extending unemployment compensation another year for those whose benefits are about to expire will create or save 300,000 jobs? Exactly like you say--we can get to 5% unemployment by laying off enough people to collect unemployment. Wow, if enough lose their jobs, we can reach 0% unemployment. I wonder if that calculates to everyone losing their jobs creates 100% employment?
With that line of reasoning you could eliminate all taxes and generate infinite revenues.